FTC targets ex-dealer exec. for $216M, Matt Bowers slams sale-leasebacks, Toyota Tundra recall hits 443K units

Hey everyone. On the latest CDG Podcast drop, I sat down with Ernie Boch Jr., CEO of Subaru of New England.

We discussed how he built a billion-dollar distribution business, the role he's playing in Subaru’s future design, and his unfiltered take on how dealers should handle tariffs.

Catch it now: YouTube, Spotify, and Apple.

— CDG

Welcome to the Daily Dealer a concise rundown of the most important automotive industry headlines that matter to car dealers, automakers, and industry insiders.

After an insane April, used car sales are coming back down to Earth:

And the average dealership days’ supply (43 days) is now the tightest it’s been since 2021.

The reason is simple—years of pandemic-era underproduction are still haunting the used market, and recent tariff and tax refund pull-ahead demand only drained more inventory off the lot.

The good news? Wholesale used vehicle appreciation is slowing, taking some pressure off dealers who need to restock their supply.

(Data source: Cox Automotive)

A former VP at Leader Automotive Group is facing a $216 million lawsuit from the FTC in a case that could shake the foundations of auto retail leadership.

James Douvas, a 30-year industry veteran, is being personally sued for allegedly deceiving consumers about pricing, add-ons, and the origin of vehicles, claims he strongly denies.

Leader Auto ultimately settled for $20 million, but the FTC refiled against Douvas individually, arguing he approved all deals across 17 franchises.

The case marks a major shift: if the FTC wins, non-owner executives across the industry could face personal liability just for being in the chain of command.

(Go deeper: 3 min. read)

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Louisiana dealer Matt Bowers has a blunt warning on sale-leasebacks: proceed with serious caution.

On yesterday’s episode of Daily Dealer Live, Bowers broke down how one of these deals left him stuck in a cramped, outdated facility for eight more years, all while the store’s sales tripled.

He says the promise of easy capital and control is often a trap, with inflated rents, rigid leases, and partners who don’t get the business.

Bottom line: Bowers says the best landlord is another dealer. Someone who wins when you win.

(Go deeper: 4 min. read)

Toyota’s recalling 443K Tundra and Tundra Hybrid pickups—because water’s getting into the taillights and shorting things out.

We’re talking 2022–2025 models, where moisture can knock out rear lamps and corrode the wiring, making it harder to see when backing up.

Owners will get recall notices in July, and dealers will handle replacements and repairs for free.

Zooming out: Toyota built its name on getting it right the first time, so odds are, they’re already working to get ahead of this.

(Go deeper: 2 min. read)

Thanks for reading everyone.

— CDG

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